*** The Variable Account Will No Longer Be Matched By an Equal Amount for Members Retiring July 1, 2004 or Later *** The PERS Board approved the adoption of the temporary rule, Calculation of Variable Match, at its April 12th meeting. The rule conforms to the requirements of the Judge Lipscomb decision and the settlement agreement in the City of Eugene v. PERS. Under this rule, the variable account will no longer be matched by an equal amount for PERS members retiring July 1, 2004, or later. PERS informed us this rule applies only to employees who still have variable accounts when they retire. Employees who successfully used the One-Time Transfer to move their variable account back to their regular account will not be affected. In addition, the rule will not apply to employees who take the total lump-sum or the lump sum option. If you have money in the variable account and are thinking about retiring within the next year, please review the PERS information carefully. Based on the temporary rule, employees retiring June 30, 2004, with an effective PERS retirement date of July 1, 2004, will not have their variable account matched by an equal amount. It will be matched only by the amount of money an employee would have had if the same money had been invested in the regular account. The rule does not apply to employees retiring May 31, 2004, with a PERS effective date of June 1, 2004, or an earlier date. Please review the "Variable Annuity Adjustment: Changes in Benefit Calculation" on the PERS web site at: http://hr.uoregon.edu/benefits/variableadjcalc.pdf If you have questions about the variable match information or would like a retirement estimate, please contact PERS Customer Service at 1-888-320-7377. *** PERS Annual Statements *** In past years, Human Resources sent the PERS Annual Statements to employees around the first of May. Unfortunately, PERS is still working on information that must be completed before they can print the 2003 annual statements. Based on information we have received from PERS, the earliest we can expect to receive statements for campus distribution is in early June. *** Estimates of 2003 Earnings for Tier One and Tier Two PERS Members *** Please refer to the PERS website for the current estimates of earnings for the PERS Tier One and Tier Two regular accounts and the variable account. http://hr.uoregon.edu/benefits/2003earncredit.pdf *** 1039 Hour Rule Does Not Apply to Retirees Who Take the Total Lump-Sum Option *** Please take a look at the PERS website for an update on the Total Lump-Sum Retirement Option and returning to work. Unfortunately, the 1039 hour rule does not apply to members who take the Total Lump-Sum Retirement option. Based on a temporary rule approved by PERS on April 12, retirees who take this option will only be allowed to work 599 hours during the first six months of retirement. Retirees will not be forced to repay their retirement benefit as long as they do not exceed 599 hours in the first six months after their retirement. Retirees who take the total lump sum option and return to work for more than 599 hours after the first six months of retirement would not be required to repay the lump sum. However, the UO would have to start paying employee and employer contributions into the state's retirement system once again for the employee. http://hr.uoregon.edu/benefits/lumpsumupdate.pdf *** Legal Challenges *** The legislature determined that any legal challenges of the PERS reforms would go directly to the Oregon Supreme Court. As you know, representatives of public employees are challenging a number of the PERS legislative changes as an unconstitutional violation of contract rights. On the other hand, representatives of state and local governments are saying the changes were needed to contain out-of-control costs. Judge David Brewer of the Oregon Court of Appeals was chosen to gather the facts that the Oregon Supreme Court will use to make its decision. His facts are included in a "Special Masters Written Report and Recommended Findings of Fact" released April 8. The Oregon Supreme Court is now ready to hold oral arguments on July 30. A decision is expected by the end of 2004 or early 2005, but could take longer. If all of the changes are overturned, PERS would still have a multi-billion dollar, long-term shortfall. *** Additional PERS Update Meetings in May *** Human Resources is sponsoring two more PERS Update meetings, conducted by PERS representatives, to provide updates on legislative changes. This meeting is for employees who still have questions and would like to attend another PERS Update meeting and for employees who were not able to attend the previous PERS presentations. The PERS presentation explains how recent legislation affects members. Specific information about critical dates for PERS members is also included. Erb Memorial Union, Fir Room Friday, May 7, 2004 1:00 to 3:00 Erb Memorial Union, Fir Room Monday, May 10, 2004 3:00 to 5:00 Registration is required. To register for one of the above meetings, call Human Resources at 346-3159 or send email to leneef@hr.uoregon.edu Helen Stoop, Benefits Administrator Human Resources University of Oregon _______________________________________________ Pers-tier1 mailing list Pers-tier1@hr.uoregon.edu http://hr.uoregon.edu/mailman/listinfo/pers-tier1 Secure mode active. Click here to return to regular mode.